One Battle After Another; Material Recovery Likely A Multi-Year Journey

Research evidence excerpt

One Battle After Another; Material Recovery Likely A Multi-Year Journey

Computer Services & IT Consulting

Endava

TD SECURITIES (USA) LLC ESTIMATE CHANGES

May 21, 2026

Price: $3.34 (05/21/2026) One Battle After Another; Material Recovery

Price Target: $4.00 (Prior $6.00) Likely A Multi-Year Journey

HOLD (2)

ESG SCORE: 69/100

Bryan C. Bergin, CFA THE TD COWEN INSIGHT

646 562 1369

3Q yielded further surprise w/ lower-than-expected performance and another cut to outlook

bryan.bergin@tdsecurities.com

due to a mix of mounting demand pressures. While DAVA.Flow progress & AI demand is

Gates Schwarzmann evident, it's nascent and overpowered by muted heritage transformation activity & weak

646 562 1363 discretionary. Street interest is apt to stay limited until growth & execution consistency

gates.schwarzmann@tdsecurities.com

recover, which may take time. Cut est & PT to $4.

Key Data

Symbol NYSE: DAVA Losing Ground on Compounding Pressures, Recovery Needs Proof & Time

Beta: 1.11 DAVA 3Q results marked a continuation of frustrating prints as execution shortfalls and

52-Week Range: $16.94-$3.34 geopolitical volatility drove a miss vs guidance and disappointing 4Q outlook (-6pts below

Market Cap: $136.2MM our organic CC revenue growth ests at midpt). Uneven demand across sectors and extended

Net Debt (MM): $243.2 deal cycles were exacerbated by escalating Middle East uncertainty, with activity stopped in

Cash/Share: $0.86 the region, including some deals that were ready to be signed. While adoption of DAVA.Flow

Dil. Shares Out (MM): 52.9 and continued scaling of AI-native revenues are encouraging, these are earlier staged and

Enterprise Value $419.9 thus too limited to offset deterioration on its heritage digital transformation T&M work and

(MM):